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Required information E5-4 and E5-5 [LO 5-1, 5-5] [The following information applies to the questions displayed below.] Morning Dove Company manufactures one model of birdbath,
Required information E5-4 and E5-5 [LO 5-1, 5-5] [The following information applies to the questions displayed below.] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,500 units, and monthly production costs for the production of 500 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. E5-4 (Static) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove's linear cost equation for a production level of 0 to 1,500 units. Enter answer as an equation in the form of y=a +bx. 4. Calculate Morning Dove's expected total cost if production increased to 1,200 units per month. Enter answer as an equation in the form of y=a+bx. Complete this question by entering your answers in the tabs below. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). Note: Round your per unit value to 2 decimal places. Complete this question by entering your answers in the tabs below. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. Note: Round your intermediate calculations and variable cost per unit to 2 decimal places. Complete this question by entering your answers in the tabs below. State Morning Dove's linear cost equation for a production level of 0 to 1,500 units. Enter answer as an equation in the form of y=a+bx. Note: Round your intermediate calculations and variable cost per unit to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate Morning Dove's expected total cost if production increased to 1,200 units per month. Enter answer as an equation in the form of y=a+bx. Note: Round Variable cost per unit to 2 decimal places
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